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Crude Oil Down as Number of Rigs Increases

Prices for crude oil extended its two-day drop today as the number of US oil rigs increased for the first time in five weeks. Baker Hughes reported that the number of rigs grew by 17 this week. The increase indicates that output from the United States should grow.

The rise of production coincides with signs that the US government is going to lift the ban on oil exports. This move should alleviate the excess of reserves that continued to swell to news records. Yet supply from the USA would add to the glut on the market, likely pushing prices even lower.

Futures for delivery of WTI crude oil in January dropped 1.03 percent to $34.59 per barrel as of 20:39 GMT on NYMEX today. February Brent crude declined 1 percent to $36.69 per barrel on ICE.
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